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66 Cards in this Set
- Front
- Back
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Definition of profit |
Is the difference between the cost to make and sell the product and the price customer pay for it |
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How do businesses form the basis for h standard of living |
By setting price and creating items for sale |
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What does standard of living mean |
Define as the output of goods produced and the service customer can afford with the money they have. |
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Do different countries have different standards of living. |
Yes |
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What does"quality of life" mean |
Defines how happy people are due to many different factors |
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How do business established and have a great impact on quality of life |
They create jobs and also provide service and goods to people |
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How do you maximize profits,what does the business have to consider |
Risk, revenue,cost/expenses |
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What is a risk |
Is a tHreat that could cause a company to lose money or time. |
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When a company has a risk of loss of tie or money what happens |
1. Business can't meet organization goals. 2.business risk of not meet profit goal. |
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Risk can be what factor to a business |
1.internal to the business. Or 2. External factors to the business |
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What is one critical part part of strategic business planning |
Is assessing these internal and external risk to develop strategies for lessening them |
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How is business success is broadly calculated as it's what |
Revenue minus it's expenses |
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What is revenue means |
Is money received by the business through selling products or providing services. |
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What are the two types of expenses Business must consider |
1 . fixed expenses 2.variable expenses |
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Fixed expenses mean what |
Don't change with output and include cost such as leases,insurance and marketing. |
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Variable expenses is what |
Include wages, supplies, transportation, and other factors that increase with output or providing a service |
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What is "breaking even" |
When a company's just cover it's expenses, the business Is considered to be breaking even |
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If a company has money left over from the expenses it has incurred is what |
It has made a profit |
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If a company incurs most costs than revenue has achieve is what |
Has achieve a loss |
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When do risk tend to be higher |
1. New business 2.Existing business launch a product or new business |
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In the united states 'histicallyWhat percentage of business fail |
95% within the 1-5 yr old starting |
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What happens when a company takes more cautious approach? |
It's in danger of losing customer to competitors |
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What does bold risky approach gets companies |
Buts them ahead of it's competitors |
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How to be a head of another business |
By using na unique strategy or by innovating product |
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What about risk should be considered in context of |
Market, the company,and the industry |
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Risk Is an important factor in deciding in what |
1.business structure as are tax implications |
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What is the four protential legal structure for businesses |
1.sole proprietorship 2.partnership/ limited liability partnership(llp) 3.Limited liability company ( LLC) 4.corporation |
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Sole proprietorship is what |
The owner is the business and is legally liable and personally at risk.the owner also pays taxes on the business. |
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What are nonprofit organization/not for profit organization. |
Are businesses that have a goal that isn't related to marking money. |
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Beside fighting for a cause what are other nonforprofit. |
1.hospital 2.zoos 3.religious organization 4.schools |
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How nonprofit organization structured |
Like corporations and have a special tax status in the us |
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What do nonprofit organization still need even if they don't operate for profit |
Need to set goal and resources to meet them |
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What do nonprofit organization competition for |
Donation, employees,and volunteer |
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Do nonprofit organization have the same competition level like business |
No |
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As companies and nonforprofit evolved what happened |
1 for profit business are involved with social issues because it's important to employees and public image 2.non for profit organization follow business model and apply principal to meet objective. |
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How do management in both nonforprofit and business find similarities |
Developing strategies budget, measures performance, provide motivation focus on productivity |
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What is a " brand" mean |
Is trade name |
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How does the brand it's self have value |
He Value by people identify and relate to an organization,exp McDonald's being mentioned burger and fries com to mind |
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Brand management and protection are As important for non for profit s for profit companies how |
They face additional challenge because they have diverse group of stakeholders than for profit The also must work hard to manage their image and deal with issues that CAn damage their brand or will hamper their ability to achieve organizational goal |
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What at are the "factors of production" |
When business provide service and good they have to inputs for resources known as factors of production. |
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What are the types of "factors of production" |
1.natural resources (commodities) 2.labor(human resources) 3.capital 5.knowledge |
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How do successful companies us factors of production efficiently |
1.The use excel to be efficient 2.The more efficient the business is it can over time produce more products or services with fewer resources |
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W ha t is a critical factor in achievement higher levels of efficiency is what |
The planning process |
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How can the. Planning process can help establish wat |
Programs 2. And approaches That lead to greater operatinal efficiently |
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Commodities are a factor of production that are what |
Are inputs that in their natural state,are know as natural resources. |
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What are type of natural resources |
,1. Farmland ,2.,forest, 3., minerals 4.oil deposit ,,5.water |
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What Is " , factor of products" capital" |
Tools,machines equipment, building,and structure that are used in the production process of good and service |
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Is money capital |
No, it produces nothing but can be use to purchased means to production |
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What is human resources or labor |
Is the contribution provided by people who work for the business |
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What does the input of labor include |
Any one involved in the production of good or providing a service |
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What is the factors of production " knowledge" |
Within the subject of business. Knowledge is defined as the combined talents and skills of employees |
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how do Organization realize the importance knowledge |
Because of new technologies and products having a workforce that has required knowledge to operate and stay up to date |
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How do today's business operates in a dynamic environment, |
Shape how they go about their day- to-day Operation and achieve their goals because environment change constantly |
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What group of organization involved outside the business |
1.economic 2.,political and legal 3.demographic 4.social 5.competitive 6.,global 7.technological |
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The group of organization ate what |
Unique in how they shape the environment for the business by offering both threats and opportunities. |
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When groups shape the environment for the business by offering both of what |
1.Threats 2.opportunities |
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What is important parts of an organization planning process |
By understanding and categorizing threats and opportunities |
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What happens when the economic environment fluctuates |
It make a business environment that affects both business and people |
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What happens in a growing economy |
Unemployment is lower and employee paid more.purchAsing power for the population increases. |
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What two other things changes based on economic environment |
Inflation and interest rates |
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In economic inflation is what |
Is an increase in prices and decrease in the purchasing power of money |
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How does the government try to control the economic activity and maintain stability. |
Through policies and regulations. |
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What are the three components of the climate of political and legal environment that business operates in |
1.the involvement of government 2.,the legislation it enacts 3. Political stability |
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To take you business global what must you consider |
Then political state of country and should assess what restriction might affect how it operates and how foreign ownership is regulated. |
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What are other factors to consider with going gobal |
1.tariffs 2.quotas 3.export restriction |
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What risk analysis should perform to understand and plan for risk related to political and economic stability of the country they are considering. |
Political risk analysis |
